PA66 Cost and Profit: Broad-Based Weakness in the Feedstock Market Continues to Erode Cost Support for PA66 (202606)

1. Hot Topic Summary

In June, the monthly average prices of all seven products in the PA66 industry chain declined month-on-month, with butadiene recording the largest drop, down 17.29% from the previous month.

Invista's listed price for hexamethylenediamine in July 2026 is 23,000 yuan/ton, a decrease of 3,300 yuan/ton compared to June.

3. In June, the East China monthly average price of PA66 was RMB 19,250/ton, down RMB 1,775/ton from the previous month, a decrease of approximately 8.44%.

2. Cost Composition Analysis

PA66 production mainly uses hexamethylenediamine and adipic acid as raw materials. In June, prices of the two major raw materials as well as upstream butadiene and benzene all weakened, with cost-side support continuing to collapse.

Regarding pure benzeneIn June, pure benzene prices fluctuated frequently, with the overall market center moving downward. In the first half of the month, the market center for pure benzene in East China generally fluctuated within the range of RMB 7,620–7,700/mt. On June 15, after the United States and Iran reached a ceasefire memorandum, international crude oil prices plunged intraday, and the futures market for chemical commodities generally weakened. Sinopec lowered its listed pure benzene price twice by a total of RMB 600/mt, bringing it down to RMB 7,100/mt. On June 30, spot pure benzene in East China was discussed at RMB 6,850–7,000/mt, with an average price of RMB 6,925/mt.

Regarding adipic acidIn June, China’s domestic adipic acid market fluctuated downward, falling below the key threshold of RMB 8,000/mt. As of June 23, the reference price for adipic acid in the East China market was RMB 7,850–8,050/mt, delivered and accepted. Maintenance shutdowns at Henan Shenma and Chongqing Huafeng remained in place, while Hengli’s plant was expected to return to normal operation. Spot supply in the market remained ample, demand stayed weak, and market prices continued to soften.

Regarding hexamethylenediamineIn July 2026, Invista's listed price for hexamethylenediamine is 23,000 yuan/ton, a decrease of 3,300 yuan/ton compared to June. Tianchen Qixiang's weekly auction for hexamethylenediamine shows no quotes from Chongqing Huafeng and Ningxia Ruitai. The continued decline in hexamethylenediamine prices has directly weakened the support for the raw material side of PA66.

Butadiene AspectIn June, the domestic butadiene price showed a continuous downward trend, with Sinopec's butadiene listing price dropping from 12,200 yuan/ton at the beginning of the month to 9,000 yuan/ton, a monthly decline of 26.22%. The retreat of upstream international crude oil and naphtha prices significantly weakened cost support, coupled with the return of overseas supplies and the closure of export arbitrage windows, resulting in significant supply pressure in the market.

3. Profit Trend

Under the dual impact of a broad decline in raw material prices and a simultaneous drop in PA66 prices, the profit margins of PA66 producers have continued to shrink.

From the price perspective, the average monthly price of PA66 in East China in June was RMB 19,250/ton, down RMB 1,775/ton from the previous month, a decline of approximately 8.44%. As of June 26, the mainstream circulating prices for spot and small-lot general engineering-grade chips in the Yuyao market were around RMB 17,000–18,000/ton. Imported supply was relatively scarce, with small-lot prices for Asahi Kasei 1300S at RMB 28,500–29,500/ton and DuPont 101L at RMB 28,000–28,500/ton.

From the cost side, the prices of hexamethylenediamine, adipic acid, butadiene, and benzene have all weakened, lacking effective support from the cost perspective. However, as the price of PA66 has also seen a significant decline, coupled with the continuously weak demand leading to difficulties in finished product shipments, the profit margins for production companies have further compressed. Some companies have already fallen into a state of loss, forcing factories to actively reduce production loads.

Unit: yuan/

Data source: JLC Network Technology

4. Cost Outlook

In terms of pure benzeneIn July, the pure benzene market may experience range-bound fluctuations. There are still relatively few imports arriving at the ports, and port inventories continue to decline. At the end of June and the beginning of July, some large refining and chemical facilities have maintenance plans, which will further tighten the overall supply of pure benzene. However, the profitability of downstream industries is under pressure, and only a small amount of stockpiling is driven by basic needs, which may limit the speed of demand recovery.

Regarding adipic acidIn July, the adipic acid market fluctuated downward, and overall it was easier to fall than to rise. The shut-down units of Henan Shenma and Chongqing Huafeng remained under maintenance, and Hengli’s unit was expected to resume normal operation. Spot supply in the market remained abundant. Downstream demand was still in the off-season in July, and demand was expected to show little improvement.

Diethylenetriamine aspectXuyang and Yongrong have released new hexamethylenediamine capacity via the caprolactam route, while Tianchen Qixiang has shut down its adiponitrile and hexamethylenediamine units for maintenance, and the hexamethylenediamine market is expected to continue declining.

Overall, in the short term, the cost support for PA66 from the raw material side remains insufficient, and the restoration of industry profits still needs to wait for demand to pick up.